An Empirical Study On The Information Content And Market Effect Of Fair Value

Fair value, which is the key problem and also the crucial problem of the world accounting research, is the focus of the argumentation during the accounting researchers, especially in the economic crisis.On February 15th, the treasure department issued the new accounting principle, ordained the listed companies practiced first, and also encouraged other firms to practice it. The most attracting part of the new accounting principle is fair value. It has became a very important measure technique and it shows the inosculate between international accounting principle and china accounting principle. Meanwhile, many people still oppugn fair value, they doubt whether the fair value can measure reliably, whether it can provide useful information. All these problems become a new aspect of research. The correlative notion of the fair value, the theory of fair value, the characteristic of fair value and the research result of foreign countries and china has been reviewed firstly, then on the basic situation of our country, empirical research has been done.There are two parties of empirical research of this passage .In the first part, the data from 2001 to 2006 are used and price model incoming model and super incoming model are also employed to analyze the value and the effect of fair value. This part is a kind of substitute research, because the fair value has been used for a very short time, there are not enough data for research. So this research uses the difference between foreign data and domestic date to get the research data for fair value. In the second part, the data of 2007 are used in the research. To compare the result of these two parts, the reliability of research can be strengthen.The results of this research indicate that the fair value can not explain the stock price and the rate of return of stock. However the market have reaction to the adjust of stock price. It is indicated that fair vale has been used in 2007, but it still be tread cautiously. Though there are some problems, the fair vale has unexampled preponderance, and it is the inevitable trend of accounting development.